External Trade
About Kıbrıs Iktisatbank Ltd. External Trade
You can make your business's import and export transaction via Kıbrıs Iktisatbank Ltd. Some information about the products:
Advance Payment
The buyer pays in advance the cost of goods to the seller before the shipment of the good. This payment method is based on confidence between buyer and the dealer. It is usually preferred by buyers and dealer who has been working for long time.
Cash Against Goods
The buyer pays the cost of goods to the seller after the shipment of the good. This method is risky for exporters but it is based on the trust between buyer and the dealer. It is usually preferred by parties who has been working for a long term.
Cash Against Documents
In this wise, after the seller sends the goods the representing property documents delivers to bank for to charged by the instructions. Seller's bank sent the documents to the customer's bank and intructs for consing by payment or commercial paper.
Banks mediating in the process against documents. They will not deliver the documents without receiving payment or before the beneficiary accepting policy in fact trust occurs.
If they want seller's bank to bills of exchange by the policy, the bank's commitment to pay occurs and this provides extra assurance for the seller.
External Warranty
If our customer not execute the commitment against to contact person and in case of declerations within a certain period, amount specified in the guaranty will be reassured.
The guaranty is necessary commitment payment. The customers who works with foreing firms can execute their commercial activities without paying cash by the bank commitment pay or assurance.
Letter of Credit
The arrangement is to be commitment to deferred payment if certain conditions have been executed predetermined, a bank will make payment onthe customer's instructions. The letter of credit is a conditional commitment. If certain conditions have been executed, the importers's bank reassures to make a payment to exporters on importers behalf.
Parties:
- Supervisior (Importer) : After signing with exporter, this side give the opening offer of the letter of credit to the bank.
- Supervisior Bank : Gets the supervisiors letter of credit opening offer and prepares the text of the letter of credit accordingly and send it. After all the conditions are done it has to pay.
- Correspondent Bank : This bank reports the letter of credit of supervisior bank. Under the terms of the letter of credit, may offer additional assurance payments by adding corfirmation to the letter of credit.
Types:
- Confirmed
- Unconfirmed
- Term
- Pay when you see
- Mix pay
- Credit Acceptence
- Secured (Stand by L/C)
- Rotary
- Red Clause
- Mutual
Some of the reasons for preference:
- Banks payment commitments with the confidence factor is ensured.
- Exporter case comply with the terms of credit payment will know with confidence.